On 1 February 2008 Taung agreed entered into an agreement with ARMGold/Harmony to acquire 100% of Jeanette. Ownership transferred fully in 2013, allowing Taung to proceed confidently with its mine planning and evaluation. The property has been and is still being drilled on behalf of Taung, providing a sound knowledge of the resource and its structure.
At present TGFS is consolidating several Prospecting Rights (including the Prospecting Right over the Project) into a single Prospecting Right. An application to convert this consolidated Prospecting Right into a Mining Right has been submitted to the DMR.
Clearly, once the existing prospecting rights are consolidated, the area over which Taung has applied for a mining right is greater than that bought from ARMGold/Harmony. Furthermore, no gold was mined by any of the previous owners of the project and Taung is planning to use only a part of the existing (and limited) infrastructure. As a result, Taung purchased a Prospecting Right to which it has added adjacent prospecting rights by way of a S102 application and has applied for a mining right over the consolidated area.
Jeanette, like the Evander No 6 shaft project, will be a brand new mine. As a result it is entitled to the capital allowance applicable to new mine developments under South African legislation.